Working remotely in Portugal: A guide for expats

Whether you’re a freelancer, entrepreneur, or full-time employee working for a company abroad, Portugal is one of the best destinations for working remotely. 

With its warm climate, low cost of living, vibrant culture, and fast internet infrastructure, it offers the perfect balance between productivity and quality of life.

In this guide, we’ll share everything you need to know about working remotely in Portugal, including the cost of living, best places to live, and lifestyle tips for remote professionals. You’ll also learn how to apply for the digital nomad visa and tax benefits in Portugal.

Why choose Portugal for remote work?

According to our report, 59% of employees value flexible work-life balance. Portugal stands out as a destination where professional ambition meets personal well-being.

Here’s why most people prefer remote work in Portugal:

Affordable cost of living

Portugal offers a comfortable lifestyle at a lower cost than most Western European countries. The average cost of living for a couple in Portugal ranges from $2,500 to $3,000 per month. 

Compared to other European countries, Portugal’s overall living expenses remain below the EU average. This makes the country more ideal for remote workers. 

Remote-work readiness

Portugal offers coworking spaces, tech hubs, and digital nomad communities in Lisbon, Porto, and Madeira. This helps remote workers stay connected both socially and professionally.

Digital connectivity

According to the EU’s Digital Economy and Society Index (DESI) 2025, about 94% of households in Portugal have access to very high-capacity internet networks, well above the EU average of 79%. Fast fiber networks and 5G coverage reach most cities and towns, making it easy for remote workers to stay online wherever they live.

Business infrastructure

Portugal’s stable economy, EU membership, and favorable business policies make it ideal for international professionals. The government actively supports innovation, startups, and remote-work programs.

Quality of life and climate

Portugal offers a relaxed Mediterranean lifestyle, mild weather year-round, and some of Europe’s most beautiful coastlines. 

Remote workers can enjoy vibrant cities like Lisbon and Porto or peaceful retreats in the Algarve and Madeira. This allows them to maintain a healthy work-life balance.

Relocating to Portugal as a remote worker

If you’re considering moving to Portugal, the following are some of the facts you need to know:

Cost of essentials

Portugal is one of the most affordable countries in Western Europe. Basic groceries, local transport, and dining out are reasonably priced. 

Groceries and food cost around €200–€300 per month, the annual tuition fee for international or private schools starts at €7,000 per month, and private health insurance costs €50–€100 per month. This allows remote workers and families to live comfortably without overspending.

Healthcare and safety

Portugal’s healthcare is among the best in Europe, offering residents reliable and affordable access to medical services through the Serviço Nacional de Saúde (SNS), the country’s public healthcare system. 

Although not entirely free, most treatments involve only a small co-payment, and care for seniors, children, and emergencies is often provided at little or no cost.

The country also ranks 7th in the 2025 Global Peace Index, according to World Population Review. This makes it an ideal place for solo professionals and families seeking a peaceful environment.

Language and culture

English is commonly spoken in larger cities like Lisbon, Porto, or the Algarve. But learning a few Portuguese phrases helps with daily interactions. 

To experience culture, Portugal holds multiple festivals in different cities. Lisbon’s Santo António Festival and Porto’s São João are two of the biggest summer events featuring music, food, and fireworks. 

Transportation and mobility

Getting around in Portugal is easy and affordable. High-speed trains connect major cities like Lisbon and Porto, while regional buses and trams make getting around easy. A monthly public transport pass is around €40–€50. 

If you love traveling, Portugal’s central location and well-connected airports make it simple to explore other European destinations on weekends.

Best places for remote workers in Portugal

The following are the best places you can relocate to as a remote professional in Portugal:

Lisbon

Source: Leonhard N.

Lisbon is the best place in Portugal for remote workers. It’s home to hundreds of coworking spaces, fast internet, and a thriving community of international professionals.

The average monthly living expenses in Lisbon start from €750 for a single person, depending on lifestyle and accommodation. A one-bedroom apartment in the city center costs around €1,200–€1,500. 

Lisbon’s international airport connects easily to major European cities, and English is widely spoken, making it easy for newcomers to settle in.

Porto

Source: Smirre

Porto is Portugal’s second-largest city and a favorite among remote workers who want a slower pace of life without giving up city conveniences. It’s known for its creative atmosphere, riverfront views, and food variety.

Groceries and dining here are slightly cheaper than in Lisbon, making Porto a great value for long-term stays.

The city offers strong internet connections, reliable public transport, and modern coworking spaces. It’s also well-connected by train and air, with frequent routes to Lisbon and other major European cities.

Madeira

Source: Euronews

Madeira is widely known for its “Digital Nomad Village” project, a government-backed initiative to attract global remote professionals. It offers free coworking spaces, networking events, and reliable high-speed internet, along with support for housing and integration into the local community.

Coworking spaces for working remotely in Portugal

Coworking spaces in Portugal can cost between €90 and €300 per month, depending on the city, amenities, and whether you choose a hot-desk or dedicated desk.

Some of the best coworking spaces in Portugal are:

• Second Home, Lisbon: A creative, plant-filled workspace inside Mercado da Ribeira. 

• Heden Coworking, Lisbon: Stylish spaces across the city, offering great views, community events, and sustainability-focused design.

• Impact Hub, Lisbon: Part of the global Impact Hub network, perfect for freelancers who value networking, mentoring, and social impact.

• Synergy Coworking, Porto: Known for its friendly atmosphere and modern facilities. This space is ideal for professionals who prefer Porto’s quieter pace and lower costs.

• The Social Hub Porto: Offers a vibrant hybrid space that combines hotel, coworking, and community living in the heart of Porto.

Remote work rules by citizenship

Portugal offers several visa options for remote professionals, depending on your nationality and how long you plan to stay. 

Below is a breakdown of how the process differs for EU citizens, non-EU nationals, Americans, and British remote workers.

EU / EEA citizens

If you’re from the EU, EEA, or Switzerland, you don’t need a visa to live and work in Portugal. You can enter freely and work remotely for any employer.

For stays longer than 90 days, you’ll just need to register your residence at the local town hall (Câmara Municipal) and obtain a Certificate of Registration (Certificado de Registo de Cidadão da União Europeia).

Non-EU nationals

Remote workers from non-EU countries can apply for the Digital Nomad Visa (D8). This is the best visa for long-term remote workers earning at least €3,480 per month (four times the minimum wage). It allows residence for up to five years with the possibility of citizenship.

Americans

U.S. citizens fall under the non-EU category but benefit from simpler entry rules. They can enter Portugal visa-free for 90 days as tourists. But for a long term stay, you need to apply for the D8 Digital Nomad Visa before you land in Portugal. 

British Citizens

Since Brexit, UK nationals are treated as non-EU citizens for visa purposes. The Digital Nomad Visa (D8) is the most popular choice among British remote workers. But they must meet the same income and documentation requirements as other third-country nationals.

Once in Portugal, they can apply for residency through AIMA (Agência para a Integração, Migrações e Asilo).

Visa options for working remotely from Portugal

The following is the visa option available that allows remote work in Portugal:

Digital Nomad Visa (D8)

The D8 Visa, also known as the Digital Nomad Visa, is a long-term residence visa created for non-EU/EEA/Swiss citizens who earn income remotely from employers or clients outside Portugal. 

It’s one of the most attractive visa options in Europe for digital professionals. It’s a particularly strong option for:

• Remote employees working for foreign companies (e.g., in the U.K. or U.S.)

• Freelancers with international clients

• Entrepreneurs managing online businesses

Once approved, the D8 Visa grants a four-month entry visa that can be converted into a two-year renewable residence permit after arrival. 

This status allows you to bring your spouse, partner, children, or dependent parents through family reunification, register for public healthcare and education, and travel visa-free across the Schengen Area. 

After five years of continuous residence, you can request for permanent residency. You can apply for Portuguese citizenship after 5 years. Though, a new law might be implemented where you will get citizenship after 10 years, provided you meet the stay and language requirements.

Here’s everything you need to know about the D8 visa’s eligibility requirements:

• Income: Minimum remote income of €3,480 per month (4× the Portuguese minimum wage).

• Savings: Recommended €10,440 in personal savings (12× monthly minimum wage) to demonstrate financial stability.

• Proof of accommodation: Most consulates require a 12-month signed rental contract in your name.

• Clean criminal record: Legalized and translated police certificate from your home country.

• Travel insurance: Minimum coverage of 6 months, valid across the Schengen area.

• Portuguese NIF & bank account: Required before submitting your final visa file.

Does Portugal tax digital nomads?

The tax obligations for remote workers relocating to Portugal under the D8 Digital Nomad Visa depend on how long you stay and where your income originates.

If you stay in Portugal for 183 days or more in a 12-month period, you become a Portuguese tax resident and may qualify for the country’s new IFICI regime, also known as NHR 2.0. 

But this tax regime is designed for highly skilled professionals working in approved fields such as technology, scientific research, engineering, education, or innovation-driven sectors.

Under NHR 2.0, eligible residents benefit from a 20% flat income tax rate on qualified Portuguese-sourced income and 0% tax on most foreign passive income for up to 10 years. But that remote income shouldn’t come from a blacklisted jurisdiction. Income from blacklisted regions can be taxed at a flat 35 percent.

If your remote income doesn’t fall into an approved sector, standard Portuguese progressive tax rates apply. These range from 14.5% to 48%, plus a small solidarity surcharge for higher incomes.

Working remotely in Portugal for UK company 

If you’re a British remote employee of a UK-based company, Portugal’s UK-Portugal Double Taxation Agreement (DTA) makes sure you won’t be taxed twice on the same income. 

Once you meet the 183-day rule or have a permanent residency in the country, you’ll be treated as a Portuguese tax resident, which means declaring your worldwide income in Portugal. But under the DTA, you can offset taxes paid in one country against your liability in the other.

Many can also apply for the IFICI regime for a reduced 20% rate on eligible income.

Working remotely in Portugal for US company

If you’re working remotely in Portugal for a U.S. company, similar protections apply under the U.S.–Portugal Double Tax Agreement for U.S residents only. The treaty allows US taxpayers to claim foreign tax credits for income taxes paid in Portugal.

If you stay fewer than 183 days in Portugal, you’ll remain a US tax resident. Once you surpass the residency threshold, you’ll be considered a Portuguese tax resident.

Tax Obligations for freelancers in Portugal

If you’re a freelancer or self-employed professional earning under €200,000 per year, Portugal applies a simplified tax regime. Instead of tracking every single expense, your taxable income is automatically calculated as a fixed percentage of your gross revenue.

Here’s how it works:

• Year 1: Only 37.5% of your revenue is treated as taxable income

• Year 2: The taxable portion rises to 56%

• Year 3 onwards: It stabilizes at 75%, which remains the standard coefficient for most freelance services.

For example, if you earn €100,000 in your first year, you’d be taxed on just €37,500, before any extra deductions. You can also declare qualifying expenses (up to 15% of your revenue) to lower your taxable base even further.

Freelancers aged below 35 also benefit from Portugal’s Under 35 Regime, which exempts a significant portion of taxable income during the first years of activity. These incentives make Portugal one of the most tax-efficient destinations for remote workers in Europe. 

To get started, you’ll need to:

• Obtain a NIF and, if applicable, register for VAT

• Register as a freelancer with the Portuguese Tax Authority (Autoridade Tributária e Aduaneira)

• Issue invoices for your services and file quarterly social-security and VAT declarations

• Submit an annual income-tax returnBut the process of registering under the IFICI (NHR 2.0) regime or planning taxes for remote income can be confusing. Touchdown offers tax consultation services to help you understand obligations, structure your remote income, and make the most of Portugal’s tax benefits.

How Touchdown helps you relocate and settle in Portugal

Touchdown is Portugal’s most trusted relocation and visa platform for digital nomads and remote professionals. Our expert team of Portuguese lawyers simplifies every step of your move, from application to setting up your NIF, bank account, and tax registration.

We understand that working remotely in a new country is more than just paperwork. Our team makes the transition smooth so you can focus on your work and enjoy life in Portugal. 

Whether you’re moving solo or bringing your family, Touchdown builds a personalized plan around your goals, lifestyle, and professional needs.

Here is how Touchdown assists you in applying for the D8 Digital Nomad Visa for working remotely in Portugal:

Eligibility and planning

Start with our free Eligibility Checker to check whether the D8 Visa or another residency option is best for your remote work. 

In just a few minutes, you’ll get a clear overview of your options. Our team then schedules a one-on-one consultation to design a personalized relocation and visa plan based on your work situation and income.

Legal review and application preparation

Our licensed Portuguese lawyers handle all the legal details for you, from reviewing your income proof to preparing your visa forms. Every document is checked to make sure you meet the consulate requirements. We also help you submit a strong, ready-to-approve application.

Bank account and NIF setup

We help you open your Portuguese bank account and register your NIF (tax identification number) remotely through our trusted financial partners. 

You’ll receive all the verified documents needed for your D8 visa application, along with step-by-step guidance and continued support throughout the process.

Consulate coordination and support

Our team handles consulate coordination from start to finish. This includes scheduling your appointment at the correct embassy, preparing you for the interview, and reviewing your file to make sure every requirement is met. 

If any visa rules or documentation standards change, we help you adapt immediately to keep your application on track.

Post-arrival assistance

Our support continues once you’ve landed in Portugal. We help you register your local address, attend your AIMA appointment, update your NIF, and complete your tax residency setup. 

You’ll have clear guidance at each step so you can get settled quickly, manage your remote work with ease, and start your new chapter in Portugal with confidence.

Book a 1:1 consultation to get tailored visa support from our team today.

FAQs about the Portugal remote work visa

What is the 183-day rule in Portugal?

The 183-day rule in Portugal determines when a foreigner becomes a Portuguese tax resident. Under Portuguese law, you are considered a tax resident if you meet either of the following conditions:

• You spend 183 days or more (consecutive or not) in Portugal within any 12-month period; or

• You maintain a habitual residence in Portugal, a home you intend to keep and occupy as your main residence.

Tax Authorities use this rule to implement your fiscal obligations. For example, if you hold a D8 Digital Nomad Visa, staying beyond 183 days in a year means you automatically qualify as a Portuguese tax resident.

What is the income requirement for a remote work visa in Portugal?

If you’re applying for the Portugal D8 visa, you must show a remote income of at least €3,480 per month in 2025. You also need savings of around €10,440 (equivalent to 12 times Portugal’s minimum monthly wage) as proof of financial stability.

Can I work remotely in Portugal without a visa?

If you’re from the EU, EEA, or Switzerland, you can work remotely in Portugal without a visa. You just need to register your residence if you stay longer than 90 days.

But if you’re a non-EU citizen, you’ll need to apply for a Digital Nomad (D8) Visa, designed for remote professionals planning short or long stays.

Can I live in Europe and work remotely for a US company?

Yes, you can live in Europe and work remotely for a U.S. company. But the exact requirements depend on your citizenship, visa status, and the country you choose to reside in.

If you’re an EU citizen, you can freely move and work across EU countries without restrictions. But non-EU citizens, including Americans, need a residency or remote work visa (such as Portugal’s D8 Digital Nomad Visa) to stay long-term while working remotely.

Can a US citizen work remotely in Portugal?

Yes, a U.S. citizen can work remotely in Portugal by applying for the D8 Digital Nomad Visa. This visa allows non-EU nationals to legally reside in Portugal and continue working for a U.S. or other foreign employer outside Portugal. 

You can stay long-term, enjoy tax benefits, and be protected under the U.S.-Portugal double taxation agreement to avoid being taxed twice on the same income.